KemPharm and Corium Expand Relationship with New Consultation Services Agreement
New agreement provides additional revenue potentially through Q1 2022
CELEBRATION, Fla., Oct. 05, 2020 (GLOBE NEWSWIRE) -- KemPharm, Inc. (OTCQB: KMPH), a specialty pharmaceutical company engaged in the discovery and development of proprietary prodrugs, today
announced that it has expanded its relationship with Corium, Inc. (Corium) through a new consultation services agreement under which KemPharm will provide product development consultation services
to Corium. These new activities are in addition to KemPharm’s ongoing commercial support activities for KP415.
In September 2019, KemPharm entered into the License Agreement with an affiliate of Gurnet Point Capital (GPC), for the exclusive worldwide rights to develop, manufacture and commercialize KemPharm’s product candidates containing serdexmethylphenidate (SDX), including KemPharm’s ADHD product candidates, KP415 and KP484 (the KP415/KP484 License Agreement). Corium, a GPC portfolio company, is leading all commercialization activities for KP415.
Through the new consultation services arrangements, Corium has engaged KemPharm to guide the product development and regulatory activities for certain current and potential future products in Corium’s portfolio, as well as to continue supporting preparation for the potential commercial launch of KP415, if approved. The initial work order under this expanded relationship provides for KemPharm to receive service fees of up to $15.6 million paid in quarterly installments through March 31, 2022. Additional details were not disclosed.
“We are very pleased to expand our working relationship with Corium to include initiatives beyond the ongoing regulatory review of KP415 and preparation for its potential commercialization,” said Travis Mickle, Ph.D., President and CEO of KemPharm. “This expansion of our work with Corium is a testament to the success of this relationship and an affirmation of KemPharm’s product development capabilities.”
“This new arrangement with Corium brings additional revenue and provides more visibility for KemPharm’s operating forecast through March 31, 2022,” said LaDuane Clifton, Chief Financial Officer of KemPharm. “In addition, the original consultation services component of the KP415/KP484 License Agreement for commercial support of KP415 has been converted into a flat-fee arrangement that will extend the related revenue stream more than a year past the KP415 PDUFA date of March 2, 2021.”